Lawsuit: F.Y.E. Managers Misclassified, Denied Overtime Wages

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Trans World Entertainment Corp., Record Town, Inc., and Record Town USA, LLC were sued in April over claims that the companies misclassified their Store Managers and Sr. Assistant Managers as exempt from overtime wages. The plaintiff says she worked for the defendants as a Sr. Assistant Manager at several of their F.Y.E. stores and was responsible for inventory, stocking merchandise, cashiering, cleaning, price labeling, customer service, and sales. The suit claims store managers performed many of the same duties, and also proposed shift schedules and assisted district managers with interviewing prospective employees. The plaintiff argues that neither position required “a meaningful degree of independent discretion” and mostly consisted of manual work unrelated to management duties.

As a result, the case argues, managers and assistant managers should have been classified as non-exempt employees under the Fair Labor Standards Act and received overtime wages. The plaintiff says the defendants failed to pay store managers a time-and-a-half premium for the hours they worked above 40 each week and miscalculated assistant managers’ overtime by using a “fluctuating work week” method in their calculations.

The defendants were named in a similar lawsuit back in May alleging that managers were misclassified and denied overtime wages.